Factoring and ABL Company Supports Booming Growth with Haversine

Many small to mid-sized factoring generalists and asset-based lending companies saw a year of growth in 2022. We were emerging from the pandemic. The government funds previously made available had been utilized and companies were looking for additional working capital. Now, with the expected continued tightening of bank credit, 2023 is shaping up to eventually be another year of expansion specifically in the specialty finance space, especially for the privately owned, factoring generalists and asset-based lenders.  

Haversine works diligently to provide finance companies – in particular factors and asset-based lenders – with additional capital to support their portfolio growth. Here’s one story of how Haversine helped a factoring and ABL firm fill funding gaps and continue to build their platform for the future.

Quick Overview: Factoring and ABL Company Sought Funds to Support Growth

In 2020, our client, a Texas-based factoring and ABL company, experienced significant growth in the transportation side of their businesses. To continue supporting that growth, maintaining financial covenants and gearing up for future deals in their pipeline, the client sought to raise additional capital behind their bank line of credit. Haversine provided at that time a $2,000,000 junior capital line that could revolve based on seasonal fluctuations to better manage cost of funds.  

By the end of 2022, the business and platform had grown significantly within each of their financing verticals. They needed to increase their bank line and have sufficiently pledged sub-debt to support their existing growth, as well as accommodate for the future. They were also seeing larger sized transactions and wanted a partner who could help them maintain concentration exposure within their portfolio.

The Win

Haversine Funding was able to continue increasing their facility, ultimately providing a $10,000,000 junior capital line to support their increased bank line of credit. Additionally, Haversine was able to participate in individual larger transactions to help them maintain their concentration levels and desired client exposure across the portfolio. The tailored financing solution has helped the lender continue to grow and succeed in the marketplace.

Loan Structure

Line: $10,000,000  

Industry: Lender Finance – Factoring and ABL  

Product: Junior Capital Lender Finance Line of Credit and Participations